EVMS Update and Refresher Training Aug 2013/Review Documents... · EVMS Annual Refresher Training,...
Transcript of EVMS Update and Refresher Training Aug 2013/Review Documents... · EVMS Annual Refresher Training,...
EVMS Annual Refresher
Training
April 2013
Page 2 EVMS Annual Refresher Training, April 2013
Training Purpose
2
• This training is provided as part of the Fermilab Office of Project Management Oversight EVMS training series. – Refresher of basic concepts
– Refresher training required annually for CAMs and Project Office personnel performing EVM
– Review issues (CARs and CIOs) identified during Surveillances/Reviews of the FRA EVMS (March 2012)
– Attendance of this training will be recorded in Fermilab TRAIN database and become part of your training record
Page 3 EVMS Annual Refresher Training, April 2013
FRA EVMS Basics Refresher
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FRA EVMS Refresher Outline
• EVMS Concepts
– EVMS based on ANSI 748b and DOE O413.3B
– Basic components of ANSI standard are:
Organization
Planning, Budgeting, Scheduling
Accounting Considerations
Analysis and Management Reports
Revisions and Data Maintenance
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FRA EVMS Documents
• Fermilab projects are under FRA EVM System
– Documentation found at
http://www.fnal.gov/directorate/OPMO/PolProc/home.htm
– System Description, 8 implementing procedures, desktop
instructions
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EVMS Data Elements
Page 7 EVMS Annual Refresher Training, April 2013
Organization
Work Breakdown Structure developed with a product-oriented focus
WBS Dictionary defines the scope of each WBS element
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Organization
Organizational Breakdown Structure is established to ensure the
project’s scope of work can be efficiently managed (likely to include
collaborating institutions
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Organization
Responsibility Assignment
Matrix establishes the key
control points (Control
Accounts) and the managers
of the entire project scope
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Planning, Scheduling and Budgeting
• A key part of baseline planning is establishing the project assumptions
– This should be initially documented early in the project, and evolve as time progresses.
• Schedule development is a iterative process among the CAM, Functional Managers, Project Controls and the Project Manager
• Work packages and planning packages – Work should be planned into detailed planning packages
where possible, otherwise, use planning packages to establish a budget, but not work details. Details are to be in BoEs.
• Risk management is an integral part of the planning process and is key driver in establishing cost and schedule management reserve and contingency
• A consistent approach should be used in developing and documenting cost estimates across a project
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Planning, Scheduling and Budgeting
• Setting a baseline – Establishes point at which formal change control to the cost, schedule, and
technical baseline will start - Project Internal Baseline (Between CD-1/CD-2)
– Earned value reporting to DOE must begin at CD-2 and data is uploaded to PARS II for projects ≥ $20M.
• Work Authorization – Work must be authorized from the Project Manager to the CAMS before it begins
– Work authorization documentation contains
Scope
Schedule
Time-phased budget (Control Account Plan)
• Work sent to collaborators requires
– Memorandum of Understanding (MOU) documenting
expected institutional contributions & responsibilities
– Statement of Work (SOW) for each fiscal year
detailing work scope, resources, and costs expected
to be covered by Fermilab, and executed through
purchase requisition/order process
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Accounting Considerations
• Fermilab’s Oracle eBS (electronic Business Suite) used to collect actual costs
• Accruals done in Oracle eBS – Automatic for material received at Fermilab, manual for services & materials
received elsewhere
• Kronos used for Fermilab labor – Labor at other institutions appears as M&S to Fermilab managers, but is
scheduled as “labor” in the Scheduling Tool (i.e. Primavera P6, Open Plan)
• Indirects are applied in Oracle eBS – Rates set at least annually by CFO, adjusted at fiscal year end to reflect actual
indirect costs at Fermilab, may be adjusted at interim dates
– opportunities for pass-through rates
– cap on indirects for large purchase orders at $500K.
• Actual hours for uncosted Scientist are collected from collaborators on spreadsheets and entered via upload to Cobra monthly
• Actual costs and hours are extracted from eBS and loaded into Cobra monthly (see upcoming graphic on Monthly Status Reporting Cycle)
– Cobra and eBS totals are reconciled
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Monthly Analysis and Management Reporting
BCWS
Updated
ETC
ACWP
ORACLE ™
e-Business Suite -
Project Costing
Module-Actuals – Directs & Indirects
Cost Processor
Deltek Cobra(BCWP Calculated In Cost
Processor)
Physical % Complete
CPRs
Review and
Analyze CPRs
Prepare VAR
Issue Monthly
Report w/narrative
Review/Approve
VAR
Scheduling Tool
Base-Line Data-Scope
-Budget
-Schedule
Performance
Data -Field Verification
-Schedule Status
-ETC Adjusted
Monthly
Actual Cost -Time Sheets
-Material
ORACLE ™
e-Business Suite -
Procurement ModuleMaterial Received Accruals
CV/SV
Trigger
Thresholds
Yes
Manual
Accruals -Services
- Travel
No
Coop
Agreement
Manual
Accruals
PARS
II
NOvA-specific
• A reminder of the process
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Cost Performance Report CPR1
• Produced monthly for CAMs and project manager
• Shows current period and cumulative performance
• Example (partial) from NOvA:
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Cost Performance Report by Control Account
• Produced monthly for CAMs and project manager
• Colors indicate threshold trigger – red requires VAR to be written
• Example (partial) from NOvA for costed resources:
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Cost Performance Report at
Customer Reporting Level
• To be included in monthly report
• Colors indicate threshold trigger
• Example from NOvA (WBS L2) for costed resources:
Cooper
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Variance Analysis
Control Account Reporting Thresholds
• Apply at Control Account level
• Red trigger requires variance analysis report to be written
• Default thresholds – more restrictive thresholds can be used with customer and senior management approval
Variance Analysis Thresholds for Control Accounts
Green Thresholds – Cost and Schedule Performance falling outside of
yellow or red thresholds
Yellow Thresholds
Cost Variance
Schedule Variance
Type Threshold limit
Dollars Current Period ≥ ± 5% to < ± 10% and ≥ $50K
Cumulative ≥ ± 5% to < ± 10% and ≥ $100K
Hours Current Period ≥ ± 5% to < ± 10% and ≥ 350 hrs
Cumulative ≥ ± 5% to < ± 10% and ≥ 700 hrs
Red Thresholds
Cost Variance
Schedule Variance
Type Threshold limit
Dollars Current Period ≥ ± 10% and ≥ $100K
Cumulative ≥ ± 10% and ≥ $200K
Hours Current Period ≥ ± 10% and ≥ 700 hrs
Cumulative ≥ ± 10% and ≥ 1400 hrs Note: This applies to SV% (Schedule Variance in %) or CV% (Cost Variance in %) and the SV or CV in $ or hours.
Page 18 EVMS Annual Refresher Training, April 2013
Variance Analysis
Customer Reporting Thresholds
• Apply at project/customer determined level – NOvA is WBS L2
• Red trigger requires variance analysis report to be written
• Default thresholds – more restrictive thresholds can be used with customer
and senior management approval
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Variance Analysis Reports (VAR)
• To be written when red threshold is triggered
• VARs to be reviewed by Project Manager and iterated if
necessary
• VARs to be signed by the CAM as the Prepare and Approved by
the Project Manager in a timely manner (VARs to be approved by end
of monthly cycle – i.e. VAR on Oct data to be approved by end of Nov)
• Corrective actions to be reviewed at project meetings (with all
CAMs to look for impacts across separate Control Accounts)
• Corrective Action Log to be statused regularly (i.e. monthly)
Cooper
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Variance Analysis Report Example
By Control Account
Explanation addresses triggered variances
Provides corrective action
Page 21 EVMS Annual Refresher Training, April 2013
Other Useful EV Chart
SPI/CPI Trend Chart Trending upward or downward – warning!
Around 1.0 – good!
Page 22 EVMS Annual Refresher Training, April 2013
Monthly Reports
• Monthly project reports must include earned value information
• Earned value information to be included:
– Status of key milestones
– Progress narrative
– Baseline change control log actions
– Project management comments
– EVMS data
– Variance explanations (if required)
• Narratives may be included to provide more information about the
project
• Monthly Reports to be issued timely (Oct Report issued by end of Nov)
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Estimate to Complete/Estimate at Completion
• Provides a forecast by the project manager and CAMs of cost of the project at completion
• EAC = ACWP + ETC – ETC is a forecast. There are multiple ways to forecast
Calculated method results can be used as reference for ETC/EAC analysis.
Manual method, calculated at the work package level, based on specifying remaining quantities/costs on each lowest-level activity.
• In some cases EAC forecast changes may become baseline changes
Act. Cost of Work Perf. Est. At Comp. Est. To Comp.
Page 24 EVMS Annual Refresher Training, April 2013
EAC/ETC Process Summary
• EAC/ETC changes are a forecast
• CAMs are to ensures that the EAC continuously reflects a valid projection of project costs. CAMs review the status of expended effort and the achievability of the remaining forecasted work using all available information to arrive at the best possible EAC.
• When substantive changes to the ETC appear on the horizon, CAMs submit the necessary changes to the PM for approval and for subsequent incorporation into the working/forecast schedule and Cobra by Project Controls. ETC changes may also be initiated directly by the Project Manager.
• On at least an annual basis, the project manager will request that all CAMs review their ETC, and submit a detailed, bottoms-up estimate for the remaining work to establish a new EAC
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Revisions and Data Maintenance
(Change Control Process)
• Changes are only done on work in the future, not to change past performance
• Change Control Thresholds are project specific
– High level thresholds (DOE’s) are identified in the Project Execution Plan (PEP).
– Lower level thresholds (FRA’s) are identified in the Project Management Plan (PMP)
• NOvA example DOE THRESHOLDS FRA THRESHOLDS
Page 26 EVMS Annual Refresher Training, April 2013
Revisions and Data Maintenance
(Change Control Process)
• Changes must be documented and approved
• Work Authorizations are updated after baseline changes
• Change logs are used to track and report change history, as well
as management reserve and available contingency
Page 27 EVMS Annual Refresher Training, April 2013
Key to Implementing a EVMS
Timeliness – Progressing/Forecasting
– Analysis
– Corrective Action
– Change Control
– Reporting
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Internal Surveillance/Review
March 2012
CARs and CIOs
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Deficiencies Identified
• 5 - Corrective Action Reports (CARs)
• 5 - Continues Improvement Opportunity
(CIOs)
Page 30 EVMS Annual Refresher Training, April 2013
CAR01 - Estimate at Completion is not
Utilized/Understood/owned by CAM
• The CAMs continue to have difficulty
understanding and taking full ownership of the
EAC calculations based on responses during the
CAM interviews. Some CAMs EAC were directly
impacted by the problems with accruals. A similar
CAR was written during the 2011 EVMS
Surveillance Review identifying the same issue
which has not been corrected as of this 2012
EVMS Surveillance Review.
Page 31 EVMS Annual Refresher Training, April 2013
CAR02 – Implementation of Change
Requests
• Change Requests are being implemented in the
baseline prior to final approval. Administrative
changes not part of CR process e.g. CAM change.
The full cost/schedule impact from the proposed
change request is not fully documented in the
change request documentation package. A
similar CAR was written during the 2011 EVMS
Surveillance Review identifying the same issue
which has not been corrected as of this 2012
EVMS Surveillance Review.
Page 32 EVMS Annual Refresher Training, April 2013
CAR03 - Timing of VARs and Quality
needs improvement
• The quality and timeliness in preparation and approval
of the Variance Analysis Reports (VARs) are not
adequate for providing effective analysis of cost and
schedule variances for proper use by the CAMs and
project management. Explanations and Corrective
Actions need improvement and the CAMs need to
improve their understanding of the trends and how to
develop corrective actions. A similar CAR was written
during the 2011 EVMS Surveillance Review identifying
the same issue which has not been corrected as of
this 2012 EVMS Surveillance Review.
Page 33 EVMS Annual Refresher Training, April 2013
CAR 04 - Objective Measurement of EV
for % complete method
• The use of percent complete for performance
measurement is subjective per the CAMs for
many activities particularly activities with durations
of longer than two months. While Peg Points are
used they are not providing objective performance
measurement. A similar CAR was written during
the 2011 EVMS Surveillance Review identifying
the same issue which has not been corrected as
of this 2012 EVMS Surveillance Review.
Page 34 EVMS Annual Refresher Training, April 2013
CAR05 – Schedule Integrity
• The NOvA Project Schedule contains open
relationships, constraints, lags and based on
some CAM interviews, the CAMs did not seem to
“own” the schedule, in particular, they were not
sure why constraints were used in the schedule. A
CIO was written during the 2011 EVMS
Surveillance Review Schedule identifying some of
the same scheduling related issues which have
not been fully resolved as of this 2012 EVMS
Surveillance Review.
Page 35 EVMS Annual Refresher Training, April 2013
CIO-01* Accrual Procedure needs
clarification
• The Accrual procedure is inconsistent in providing
valid estimates of current cost incurred. The
CAMs need to be held responsible for accruals to
ensure the actual cost of work performed and the
estimate at completion are both accurately
represented in the monthly reports.
* CIO Requires a corrective action plan.
Page 36 EVMS Annual Refresher Training, April 2013
CIO-02* - Corrective Action Log not used
effectively
• A corrective action log has been created which
tracks corrective actions required stated in the
variance analysis reports. Improvements are
needed to provide effective tracking of the
identified corrective actions to close. There has
been progress made in this area (from the last
review) but additional improvement is needed
* CIO Requires a corrective action plan.
Page 37 EVMS Annual Refresher Training, April 2013
CIO-03* - Major subcontractors should
be included in OBS
• The Organizational Breakdown Structure needs to
identify major subcontracts that are performing the
work. A determination is needed as to what
constitutes a major subcontract.
* CIO Requires a corrective action plan.
Page 38 EVMS Annual Refresher Training, April 2013
CIO-04* Additional CAM Training
• CAM Training is still needed in a variety of
process areas within EVMS, in fact a more
comprehensive approach is recommended. A few
examples include: Opening/Closing process for
CA, Terminology e.g. EAC, WAD, CAP, and the
use and purpose of the Corrective Action Log.
This list is not an inclusive list.
* CIO Requires a corrective action plan.
Page 39 EVMS Annual Refresher Training, April 2013
CIO-05 – Disclosure Statement Is Not
Current
• Disclosure Statement has not been updated by
recent DOE change in capitalization threshold to
$500K.